Guggenheim cautious on Telus International stock amid economic uncertainty By

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Tuesday, Guggenheim began coverage on Telus (NYSE:) International (NYSE:TIXT), assigning a Neutral rating to the company’s stock. The firm pointed to macroeconomic uncertainty affecting the business process outsourcing (BPO) services provided by Telus International. This sector is particularly sensitive as clients are pushing for cost optimization in the current economic climate.

The firm noted that Telus International’s recent acquisition of WillowTree is a strategic move that could position the company to benefit from any potential increase in discretionary spending if the economy recovers. WillowTree’s addition to Telus International’s portfolio is seen as a way to diversify its service offerings and tap into new demand.

The analyst’s comments underscore the balance of risks and growth prospects for Telus International.

“Macroeconomic uncertainty continues to weigh on TIXT’s BPO-oriented services, particularly as customers look for cost optimization levers, but recently-acquired WillowTree should allow TIXT to participate in potential demand upside in discretionary spend should we see a recovery,” the analyst stated.

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